In a downstairs conference room in San Mateo, Calif., a dozen businessmen from around the world are listening to the nitty gritty about venture capital investing. The speakers at this 4-day course are some of Silicon Valley’s most successful investors, from early pioneer Franklin “Pitch” Johnson to tech investor Steve Jurvetson of Draper, Fisher Jurvetson. Many are members of Forbes annual Midas List.

VCx gathering in San Mateo, Calif. in late May 2015. (photo courtesy VCx)

The gathering, which took place in late May, is an experiment in invite-only bespoke education: A select group of high-net worth entrepreneurs and individuals are invited to spend $12,000 for a course called VCx. In return they get insights into topics such as what to avoid when investing in a startup, tips for the investment process, choosing a disruptive opportunity, and what you need to know about venture-backed company directors. They listen to startups give an investment pitch, and are coached by venture capitalists on the kinds of questions to ask. They visit successful companies and promising startups in the Valley. The media is not invited to VCx, but FORBES got an exclusive opportunity to sit in for part of an afternoon and a networking happy hour.

One attendee from Chile told me he found it to be very worthwhile. "It's an introduction to something very different from how I spend most of my time," this attendee said.

VCx is the brainchild of venture capitalist Tim Draper, managing director at VC firm Draper, Fisher, Jurvetson and founder of accelerator and entrepreneurship program Draper University; and Diego Alcaino, a Chilean who had launched a startup, raised some venture capital and incubated the company in Silicon Valley. Then he took a job in investment banking in Chile, advising family offices and traditional business. "I saw first-hand that these investors lacked the necessary VC know-how to assess the increasing amount of startup deal flow they were receiving," says Alcaino. "I knew VC know-how was a real bottleneck in the world of capital investments, and that Silicon Valley VCs would benefit from meeting prominent entrepreneurial families that can really help startups grow globally." That led Alcaino to come up with VCx, and he went to Tim Draper with his idea.

Says Tim Draper, "Draper University's VCx is an opportunity for billionaires who want to get into venture capital to learn from some of the best before they endeavor to invest in entrepreneurs directly or indirectly through top early stage firms like Draper Associates."

The first VCx event was in 2014, and drew participants from 9 different countries, including from Peru, Romania, the Ukraine and Venezuela. They ranged in age from 25 to 65 and the majority of attendees had started companies. The 2015 VCx event attracted attendees from 8 different countries, including Singapore and Italy. Only one was American. "People come from all over the world to experience a rocket ride through Silicon Valley and hear from venture capitalists with long successful careers and those innovators who are disintermediating venture capital like AngelList and Crowdfunder," says Tim Draper.

The small group format enhances the feeling of exclusivity. Scott Kupor, managing partner at venture capital firm Andreessen Horowitz, spoke about the conflicts that sometimes arise between founders and venture investors. Evan Epstein, director of the Rock Center for Corporate Governance at Stanford University, explained some of the ramifications of the different classes of shares held by founders and investors. Steve Jurvetson of Draper, Fisher, Jurvetson talked about how to invest in disruptive innovation. There were plenty of questions from participants.

The VCx organizers get the group out and about in Silicon Valley. Last year the group visited Tesla; this year they visited
Intuitive Surgical and Jaunt VR. Plus they listened to pitches from 6 startups.

Alcaino and Tim Draper are planning to increase the frequency of the VCx courses to twice a year. The next one is planned for November. Participants, many of whom spoke for this promo video (but didn't identify themselves) seem content with the results. No word yet whether any of the participants have invested in Silicon Valley venture capital funds.

I'm a San Francisco-based Assistant Managing Editor with a focus on wealth. I edit mostly, but also write about how the richest get wealthy and how they spend their time and their money. My colleague Luisa Kroll at Forbes in New York and I oversee the massive reporting effor...